- ETH/BTC rose above the 50-week SMA at 0.18, marking its first reclaim since January 2023.
- The last similar reclaim in February 2020 preceded months of ETH strength and an extended rally in the altcoin market.
- Merlijn The Trader’s “ALTSEASON IMPULSE 3” signal now shows stronger readings, aligning with ETH/BTC momentum and possible altcoin expansion.
The ETH/BTC reclaim of the 50-week SMA has caught crypto market attention after Ethereum outperformed Bitcoin for the first time in over a year. Looking closer, with the level at present keeping as support, traders are assessing whether this move might set up the next phase for altcoins.
ETH/BTC Breaks a Year-Long Pattern
ETH/BTC moved above the 50-week simple moving average at 0.18, ending a stretch of consistent weakness since January 2023. The pair has since held that level as support and pushed toward 0.21, hinting at a likely change in trading environment direction.
Analyst @Crypflow pointed out that the last similar reclaim happened in February 2020. That breakout led to months of ETH momentum against BTC and preceded a broad rally in the altcoin trading environment. The current chart setup bears a strong resemblance to that earlier period, prompting closer monitoring from traders.
Holding above a major long-term average on the weekly chart is often viewed as confirmation of renewed performance. For Ethereum, this has the potential to be the first step toward regaining a leading position in the crypto market cycle.
Ethereum’s Role in Market Rotation
In past cycles, strong ETH/BTC performance has been a signal for capital rotation into other cryptocurrencies. The February 2020 reclaim not only strengthened Ethereum’s position but also helped drive capital into smaller projects, leading to a multi-month altcoin advance.
This effect is partly driven by trader behavior. When Ethereum gains on Bitcoin, crypto market sentiment tends to shift toward riskier assets, opening the door for increased speculation and larger portfolio diversification.
The 2025 breakout has revived similar expectations. Many crypto market investors are at present watching resistance levels above current prices to gauge whether this move has the potential to develop into a larger trend.
What It Means for Altcoins
For altcoins, the ETH/BTC reclaim of the 50-week SMA has the potential to mark the beginning of an expansion phase. In past cycles, Ethereum’s performance against Bitcoin has often triggered capital flows into a wider range of digital assets.
Merlijn The Trader pointed to the “ALTSEASON IMPULSE 3” signal, a measure that correctly anticipated two previous surges in total altcoin trading environment capitalization. This time, the readings are described as stronger, longer, and more intense than in prior cycles.
If Ethereum sustains its position above the reclaimed support, altcoins have the potential to see a lift in liquidity and valuations. This combination of technical performance and crypto market signals may set the stage for wider participation and renewed momentum in the sector.
